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MTS Allstream Inc. is offering a phone service for small businesses over its managed data network. Hosted Phone System, which was launched Monday in Toronto, lets users manage their service using Web-based tools.

Instead of having an on-site private branch exchange (PBX), Hosted Phone System lets users choose the number of phones and a package of service, including voicemail, the ability to dial by extension, caller ID, hold, auto attendant and hunt groups.

Pricing depends on the length of contract and features. For example, the standard version, which includes 24 features and 14 Web-based tools, costs $55 per month for a one year contract, plus three cents per minute.